by John Luke Tyner | Aug 4, 2022 | Blog, Bonds
Another Sizable Hike The Fed raised its policy rate by 75 bps as expected, which according to Chairman Powell brings the Fed Funds target range back to “neutral”. Powell indicated decisions moving forward would be data dependent. Following the market responses...
by John Luke Tyner | Jul 20, 2022 | Blog, Bonds
Another Month, Another (BIG) Hike. Next Wednesday, July 27th, the Fed is expected to hike 75bps and bring their overnight target up to the FOMC’s consensus neutral rate of 2.5%. We believe that more hikes will be needed to tame inflation, which helps explain why...
by John Luke Tyner | Jul 12, 2022 | Blog, Macro Updates
Powell Pivot or Powell Plunge… Which is It? The Fed’s aggressive tightening over the last 3 months has been a vicious attempt to regain their credibility after insisting inflation was merely transitory for all of 2021 + the first quarter of ‘22. In turn, for their...
by John Luke Tyner | Jul 7, 2022 | Blog, Bonds, Market Updates
The Yield Curve Inverted… Again The yield curve has inverted temporarily several times this year, but it’s only been for a day or two and then bounced back to a more normal shape (front end lower than the long end). As the Fed continues to hike rates (raising rates at...
by John Luke Tyner | Jun 28, 2022 | Blog, Macro Updates
A Central Bank’s place in an economy is to be the behind-the-scenes moderator of financial conditions. Here in the US, they specifically have two jobs: price stability and full employment. Their job is to step into the mix when financial conditions overly...
